In Arizona, the mismanagement of finances could lead to a possible foreclosure. During the foreclosure process, the lender seizes the property and places it for sale through an auction. The value received is applied to the outstanding balance of the mortgage loan. However, any left over values remain the responsibility of the consumer. This event could lead to a lawsuit and detrimental effects on the consumer’s credit. Local attorneys help consumers fight against a Foreclosure Casa Grande AZ to prevent this negative impact.
Why Should Consumers Choose Chapter 13?
Chapter 13 provides an automatic stay for up to five years. The duration of the bankruptcy case depends on the choices made by the judge. If the consumer has an extensive volume of debts, they may provide the longest duration for their case.
Equally, the chapter allows the consumer to settle debts through one monthly payment. They pay this monthly payment for the full duration of the case. The funds are distributed among their creditors to pay off the accepted balance.
How to Qualify for Chapter 13
Consumers must provide information about their income to qualify for chapter 13. This includes documentation for the last six month period. This information helps the judge identify their annual income. To qualify, the consumer must possess an annual income that is more than $48,621. This is the median income for the state. However, this value may vary based on the median for the county in which the claim is filed.
Are There Any Drawbacks?
Yes, chapter 13 does have a few drawbacks. The consumer must use all their disposable income to settle debts. The court identifies the monthly payment and obligations that the consumer must manage each month. Any additional income is applied to debts that aren’t included in the claim.
In Arizona, consumers gain a second chance by filing a chapter 13 claim. If they are facing foreclosure or repossession, this claim could stop these legal action altogether. It could provide an automatic stay that gives the consumer the chance to settle debts without becoming homeless. Consumers who are facing Foreclosure Casa Grande AZ should visit Asheton B Call or Browse Site for more information today.
